Notice of establishment of a joint-venture

22. 4. 2020 10:00
  1. Česká spořitelna, a.s., Československá obchodní banka, a.s., and Komerční banka, a.s. (“the Parties”) are planning to establish a jointly controlled company – a joint venture (“JV”). In the Czech Republic, the JV will provide the electronic identification and authentication service and trust services (“Identification Services”). The JV will provide the Identification Services on the basis of banking identity for up to 5.5 million citizens who routinely use their banking identity when logging into online banking or in remote communication with their banks. Aggregating the involved banks’ banking identities and creating its own portfolio of identities, the JV will provide a unique product – an “all in one” service for service providers, which will include both public institutions and privately-held companies.

  2. The transaction is the fundamental component of the overall development of e-government and the digitalisation of Czech society, and enjoys full support of public institutions. It follows up on the legislative changes that have allowed banks to provide Identification Services. The JV will provide Identification Services in relation to various services provided by public institutions (such as the filing of tax returns, payment of the dustbin charges, checks of driving licences) and the private sector (such as financial institutions, telecom operators, energy suppliers, and e-shops). Clients holding an account in any bank (i.e. not only clients of the Parties) operating in the Czech Republic and participating in the JV’s activities will have an opportunity to arrange their matters with both privately-held companies and public institutions electronically and easily.

  3. Although the JV will be controlled by the Parties, participation in the JV’s activities will be open for other banks. All banks and foreign banks’ branches registered in the Czech Republic will be able to participate in the provision of the JV’s Identification Services in the position as identity providers under equal and transparently published conditions. The Parties also expect that interested banks will later be able to become minority shareholders of the JV. At the same time, all banks that will become identity providers as part of the JV’s product will also be able to operate as service providers, i.e. companies that use the JV’s product in the provision of their own banking services.

  4. The transaction is subject to approval by the European Commission as part of the control of concentrations of undertakings. Pending the European Commission’s decision, no other information will therefore be published.

Pavel Zúbek
KB Communication
+420 725 420 107